US recap: EUR/USD holds losses after Fed minutes
Nov 26 (Reuters) -The dollar rose broadly on Tuesday amid firmer Treasury yields, ongoing geopolitical risks and concerns that President-elect Donald Trump’s proposed tariffs will lead to trade wars.
Officials from Mexico, Canada and China warned that imposing hefty tariffs on goods would harm the economies of all involved and would risk aggravating inflation and damaging job markets.
Minutes of the Fed's Nov. 6-7 meeting showed participants less worried about the downside risks to jobs market and economy, seeing it as appropriate to lower rates gradually.
The euro slid after Portuguese central bank chief Mario Centeno and European Central Bank Vice President Luis de Guindos warned about stagnating growth and potential impact of tariffs.
Euro zone wage growth and services inflation remain elevated, raising the risk that overall price growth will moderate more slowly than currently expected, European Central Bank policymaker Olli Rehn said.
The common currency was also weighed down by the escalating conflict in Ukraine with G7 ministers underliningsupport and the United States surging security assistance to bolster the country's defenses.
Israel's security cabinet has agreed a ceasefire deal with Lebanon, Channel 12 reported on Tuesday.
The yen rose against its G10 peers amid haven-related demand and profit-taking.
OPEC+ nations are discussing a further delay to a planned oil output hike that was due to start in January.
Treasury yields were up 3 to 4 basis points after the Fed minutes and 5-year auction. The 2s-10s curve was up about 3 basis points at +3.5bp.
The S&P 500 rose 0.41% fueled by gains in consumer shares and utilities.
WTI oil fell 0.73% after Israel agreed to a ceasefire deal with Lebanon.
Gold was little changed amid a stronger dollar and higher Treasury yields.
Copper dropped 1.3% after Trump offered details of proposed U.S. tariffs on China.
Heading toward the close: EUR/USD -0.28%, USD/JPY -0.58%, GBP/USD -0.24%, AUD/USD -0.75%, DXY +0.24%, EUR/JPY -0.83%, GBP/JPY -0.81%, AUD/JPY -1.30%.
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Editing by Burton Frierson
Reporting by Robert Fullem
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